Solution

ID: past-exam-of-the-probability-statistics-and-options-ii-course-of-the-university-of-oxford/2007/p/3/a/solution

The printed product omits the node : its lower index must be zero for the stated formula to hold. For example, with , nodes , and data , the printed gives , which fails the first value condition. Use the corrected Lagrange basis polynomials
They satisfy . Define and . At a node with , the double zero of gives . At , direct differentiation gives
Both polynomials have degree at most . Consequently has the specified values and derivatives, and is the required Hermite interpolating polynomial. The source product is retained literally in the private transcription; this solution identifies its necessary correction.

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